Amazon (AMZN) is preparing another large round of corporate job cuts, which could draw fresh attention from investors. This would be the second major round of cuts as the company works toward trimming about 30,000 office roles in total, according to a Reuters report.
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Amazon already cut around 14,000 white-collar jobs in October. The next round is expected to be close to that size. The layoffs may start as soon as Tuesday, though details could still change.
The cuts are expected to hit several key areas, including Amazon Web Services (AWS), the main retail business, Prime Video, and human resources, which Amazon calls People Experience and Technology.
Jassy Says the Issue Is Culture
Amazon CEO Andy Jassy has made it clear that these cuts are not about weak demand or falling profits. Speaking on the company’s third-quarter earnings call, he said the move was “not really financially driven” and “not even really AI-driven.”
Instead, Jassy pointed to company culture. He said Amazon has added too many layers over time, which has slowed teams down and made the company less efficient.
While Jassy said that AI is not the main reason behind the current cuts, it still plays a role over time. Earlier this year, Jassy said Amazon’s corporate workforce would likely shrink gradually as AI improves how teams work.
Amazon is already using AI to help write code, handle routine tasks, and speed up decisions, and it showcased new AI tools at its AWS event in December.
What Is the Price Target for AMZN Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Amazon stock based on 46 Buys and one Hold assigned in the past three months. Furthermore, the average AMZN stock price target of $294.45 per share implies 25.65% upside potential from current levels.
